Title: THE MUSIC INDUSTRY IN THE NEW MILLENNUIM (Global and

Local Perspective)

Abstract
Music industry is one for the factory that help the economy of one country in term of GDP or
Gross Domestic Product, once the country economy is effected and benefited its people as
well will be affected. According to the US

Introduction.
The global pandemic caused widespread disruption to the music business, in particular
decimating the live business and impacting publisher public performance royalties. Although
the recorded music business experienced a dip in the earlier months of the pandemic, the
remainder of the year saw industry revenue rebound, making it the sixth successive year of
growth. Global recorded music revenues grew 7% in 2020 to reach $23.1 billion in record label
trade revenue terms. The growth rate was significantly below the 11% increases seen in both
2018 and 2019, and the annual revenue increase was just $1.5 billion, compared to $2.1 billion
in 2019. These metrics reflect the dampening effect of the pandemic. Global revenue was
down 3% in Q2 2020 compared to one year earlier, but up to 15% growth in Q4 2020,
suggesting a strong 2021 may lie ahead if that momentum continues.
Market share shifts
The major record labels saw collective market share fall from 66.5% in 2019 to 65.5% in 2020.
While this shift is part of a long-term market dynamic, most of the dip was down to WMG
reporting flat revenues for the year. SME gained share and UMG remained the largest record
label with 29.2% market share. Independent labels also saw a 0.1 point drop in market share,
but there was a very mixed story for independents. MIDiA fielded a global survey of
independent labels and the data from that helped us track the contribution of independents.
Independent labels as a whole grew by 6.7% (i.e. slightly below the market), but within the
sector there was a massive diversity of growth rates, with smaller, newer Indies tending to
grow faster than the market (some dramatically so) and larger, more established indies
growing below the market rate. There were also many independents (of all sizes) that saw
revenues fall in 2020.
The unstoppable rise of independent artists
In 2019, artists direct were the stand-out success story, massively outperforming the market.
History repeated itself in 2020 with artists direct growing by a staggering 34.1% to break the
billion-dollar market for the first time, ending the year on $1.2 billion and in the process
increasing market share by more than a whole point, up to 5.1% in 2020. The continued rise of
independent artists reflects the clear and pronounced market shift towards this new, emerging
generation of artists. With lots of private equity money now pouring into creator tools
companies like Native Instruments, expect this space to heat up even further in 2021. The
recorded music business is changing, and it is changing fast.

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 Hypothesis.
Before the introduction of the internet, the music industry was way more different. To hear
your favorite songs, you would have to drive all the way to the music store to buy your favorite
CD, or wait for the song to come on the radio. These days, hours of streaming and downloading
music is available at your fingertips and your favorite songs, artists, and albums are just a click
away. However, there have also been some negative effects as well, such as the illegal
downloading and sharing of music. Because of this, the internet has led to a new source of
obtaining music while also leading to negative effects on the careers of music artists all over
the world.

One of the most notable changes that the internet has caused is the new ways of distributing
music. Instead of buying music from a music store, consumers may now buy their music online.
Now that music is so easily obtainable, it is easier for people to share music and illegally
download it for free. And that brings up the issue of free music. The decision of whether or not
to have their song available for free download is completely up to the artist. The effects can be
positive because the artist’s work is being spread around and it helps them gain fans and
popularity. However, the artist is losing money because many people are getting access to their
songs without paying and they are losing money that they would have gotten if they had sold
it instead.

Nowadays, downloading songs isn’t the only way to listen to music. Today we have streaming
services, such as Spotify and Pandora that allow us to listen to music whenever we want for
hours at a time all for free. People are now streaming their music instead of actually purchasing
it. Because of this, the industry has become half of its worth. Album sales and track downloads
from online sources have fallen since then as well. Every time a song is streamed, only a tiny
fraction of the money made goes to the record company and is then divided even further to
pay the songwriter, publishers, and performers. One example of an artist refusing to put their
songs on streaming services is Taylor Swift. Her songs are not on Spotify and she did not allow
Apple Music to stream her music for free.

One of the biggest things the internet has given us is social media. New artists can now be
discovered online and they now have another place to share music. As a result of social media
being such a huge part of our lives, an artist’s success now no longer depends on how much
money they make, but instead how big their fan base is. Not only has social media allowed
artists to share their work, but it has also been one of the biggest factors when it comes to
signing new artists. Companies now look at the popularity of an artist has before signing them
using their social media. However, record labels are not entirely necessary for one’s success.
Although it is more difficult to have widespread popularity, you can still become famous just
by using the internet and promoting yourself. Not to mention that not all music artists are
discovered online. Some of these artists would not be as popular as they are today without the
help of the internet and social media.

As briefly mentioned before, the internet has impacted the careers of music artists. However,
they must choose between which they value more: fame or money. The path that their career

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 takes is completely up to the artist; they may choose to use the internet to their advantage or
not but the internet has undeniably affected the careers of popular music artists that we know
today.

How does this affect us? The internet has obviously changed the music industry, but how will
this affect us, the consumers? Well for starters the cost of music decreased. And since CDs are
not selling as well as they used to and everyone is buying their music online, perhaps CDs will
be completely discarded as buying music online takes over. The main audience of the music
industry are teenagers. Today teenagers are obsessed with new technology and are always
seeming to want the latest and greatest. One of those new technology devices are
smartphones. Smartphones have the ability to store and play music, which increases the
demand for music even more, especially now that you can have access to it anywhere just with
the touch of your fingertips. This is another reason why buying music online is beginning to
replace buying physical copies.

As you may have already concluded, more ways of getting music and having negative effects
on the careers of music artists are all effects of the internet on the music industry. I believe the
effects are positive because we can now listen to songs for free and new artists may be
discovered. However, the tremendous loss of money this industry has encountered will only
continue to grow if these issues aren’t resolved. Perhaps it is time that all artists pull a Taylor
Swift and withdraw their songs from streaming services and save this failing industry.
Methodology.
Can we stop people downloading music thru the use of internet?, its literally No, no one can
stop and no will be, because of it the sales will be effected, and the country GDP as well, now
will be the impact on it to industry, but there are certain Law that the country being
implemented

Results
Unauthorized Copying is Against the Law Copyright law protects the value of
creative work. When you make unauthorized copies of someone’s creative work,
you are taking something of value from the owner without his or her permission.
Most likely, you’ve seen the FBI warning about unauthorized copying at the
beginning of a movie DVD. Though you may not find these messages on all compact
discs or music you’ve downloaded from the Internet, the same laws apply. Federal
law provides severe civil and criminal penalties for the unauthorized reproduction,
distribution, rental or digital transmission of copyrighted sound recordings. (Title 17,
United States Code, Sections 501 and 506).
What the Law Says and What it Means
Making unauthorized copies of copyrighted music recordings is against the law and
may subject you to civil and criminal liability. A civil lawsuit could hold you
responsible for thousands of dollars in damages. Criminal charges may leave you
with a felony record, accompanied by up to five years of jail time and fines up to

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 $250,000. You may find this surprising. After all, compact discs may be easily be
copied multiple times with inexpensive CD-R burning technology. Further, when
you’re on the Internet, digital information can seem to be as free as air. U.S.
copyright law does in fact provide full protection of sound recordings, whether they
exist in the form of physical CD’s or digital files. Regardless of the format at issue,
the same basic principle applies: music sound recordings may not be copied or
distributed without the permission of the owner.
What the Courts Have to Say
A long series of court rulings has made it very clear that uploading and downloading
copyrighted music without permission on P2P networks constitutes infringement
and could be a crime.
Common examples of online copyright infringement:
You download an app on your smartphone that allows you to ‘strip’ the audio from
any YouTube music video and permanently keep that audio in your music collection.
You make an MP3 copy of a song because the CD you bought expressly permits you
to do so. But then you put your MP3 copy on the Internet, using a file-sharing
network, so that millions of other people can download it.
Even if you don’t illegally offer recordings to others, you join a file-sharing network
and download unauthorized copies of all the copyrighted music you want for free
from the computers of other network members.
In order to gain access to copyrighted music on the computers of other network
members, you pay a fee to join a file-sharing network that isn’t authorized to
distribute or make copies of copyrighted music. Then you download unauthorized
copies of all the music you want.
You transfer copyrighted music using an instant messaging service.
You have a computer with a CD burner, which you use to burn copies of music you
have downloaded onto writable CDs for all of your friends.
Someone you don’t know e-mails you a copy of a copyrighted song, which you
forward to your friends.
When It Comes to Copying Music, What’s Okay and what’s not:
Technology has made digital copying easier than ever. But just because advances in
technology make it possible to copy music doesn’t mean it’s legal to do so. Here are
tips on how to enjoy the music while respecting rights of others in the digital world.
Stick with these, and you’ll be doing right by the people who created the music.
Internet Copying
It’s okay to download and stream music from sites authorized by the owners of the
copyrighted music, whether or not such sites charge a fee.
Visit www.musicmatters.com for a list of a number of authorized and safe sites
where permission is granted and content is available for downloading and/or
streaming.
It’s never okay to download unauthorized music from pirate sites (web or FTP) or
peer-to-peer systems, such as BitTorrent.

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 It’s never okay to make unauthorized copies of music available to others (that is,
uploading music) on peer-to-peer systems.
Copying CDs
Its okay to copy music onto special Audio CD-R’s, mini-discs, and digital tapes
(because royalties have been paid on them) – but not for commercial purposes.
Beyond that, there’s no legal “right” to copy the copyrighted music on a CD onto a
CD-R. However, burning a copy of CD onto a CD-R, or transferring a copy onto your
computer hard drive or your portable music player, won’t usually raise concerns as
long as:
The copy is made from an authorized original CD that you legitimately own
The copy is just for your personal use. It’s not a personal use – in fact, its illegal – to
give away the copy or lend it to others for copying.
The owners of copyrighted music have the right to use protection technology to
allow or prevent copying.
Remember, it’s never okay to sell or make commercial use of a copy that you make.

Analysis.
Thru the use of our modern technology and internet everything is soft and convenient and also
it bear disadvantages to some of the business like music industries because if could effect to
their sales not as a whole but portion of it.
Conclusions.
It’s difficult to put some control to the things that you’ve know it’s hard to control and you
never know what would happened in the future, but instead of preventing things why not use
it weakness these weakness as your strength once you know how to use it, at the end of the
day you will be benefited and you could say that everything have a reason.

References.

https://midiaresearch.com/blog/recorded-music-revenues-hit-231-billion-in-2020-with-artists-direct-
the-winners-again
https://www.riaa.com/resources-learning/about-piracy/

Acknowledgments.
“ I would like to thank my co-officemate and friends, in behalf of my lapses at work for the reason that I’m
studying at them same time coping the report that need to finish before the deadline, you are still there to
cheer me up that boost my confidence to finish that whatever is my table.”

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